NASHVILLE – The state House today sent to Gov. Bill Haslam a bill requiring the state Comptroller to begin conducting regular audits of the Chattanooga Convention & Visitors Bureau’s expenditures of local hotel and motel tax receipts.
The bill, sponsored by Rep. Mike Carter, R-Ooltewah, passed 93-1. Sen. Todd Gardenhire, R-Chattanooga, passed the bill on Monday. Gardenhire has questioned “lavish” spending by Chattanooga’s tourism bureau, which is on track to get an estimated $7.8 million in county hotel-motel tax revenue in the current fiscal year.
Hamilton County Commissioner Tim Boyd has as well and wants to cut $2 million in the revenue it receives. CVB officials have defended their spending, saying it has helped fuel the county’s tourism industry.
Last CVB President Bob Doak and tourism industry leaders came before the county commission to oppose cuts to the agency. Any cuts to CVB funding – even 10 percent – would be “detrimental,” Vision Hospitality founder Mitch Patel said.
Doak distributed a packet showing the agency spent $4.8 million on marketing in fiscal 2015 and generated more than $60 million for Hamilton County through 65 meetings, conventions and sporting events in 2016.